Correlation Between Applied UV and Bassett Furniture
Can any of the company-specific risk be diversified away by investing in both Applied UV and Bassett Furniture at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Applied UV and Bassett Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied UV Preferred and Bassett Furniture Industries, you can compare the effects of market volatilities on Applied UV and Bassett Furniture and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Applied UV with a short position of Bassett Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied UV and Bassett Furniture.
Diversification Opportunities for Applied UV and Bassett Furniture
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applied and Bassett is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied UV Preferred and Bassett Furniture Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bassett Furniture and Applied UV is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Applied UV Preferred are associated (or correlated) with Bassett Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bassett Furniture has no effect on the direction of Applied UV i.e., Applied UV and Bassett Furniture go up and down completely randomly.
Pair Corralation between Applied UV and Bassett Furniture
If you would invest 1,390 in Bassett Furniture Industries on October 25, 2024 and sell it today you would lose (2.00) from holding Bassett Furniture Industries or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Applied UV Preferred vs. Bassett Furniture Industries
Performance |
| Timeline |
| Applied UV Preferred |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bassett Furniture |
Applied UV and Bassett Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied UV and Bassett Furniture
The main advantage of trading using opposite Applied UV and Bassett Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied UV position performs unexpectedly, Bassett Furniture can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bassett Furniture will offset losses from the drop in Bassett Furniture's long position.| Applied UV vs. FAT Brands | Applied UV vs. Cadiz Depositary Shares | Applied UV vs. Atlanticus Holdings Corp | Applied UV vs. Presidio Property Trust |
| Bassett Furniture vs. Hooker Furniture | Bassett Furniture vs. Flexsteel Industries | Bassett Furniture vs. Haverty Furniture Companies | Bassett Furniture vs. La Z Boy Incorporated |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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